1. Calculation and decomposition of spot price using interior point nonlinear optimisation methods
- Author
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Y.H. Song, C. Nakazawa, Deping Zhang, K. Xie, and Y. Nakanishi
- Subjects
Engineering ,Mathematical optimization ,Spot contract ,business.industry ,Energy Engineering and Power Technology ,Spot market ,Gauge (firearms) ,AC power ,Nonlinear system ,Decomposition (computer science) ,Decomposition method (constraint satisfaction) ,Electrical and Electronic Engineering ,business ,Mathematical economics ,Interior point method - Abstract
Optimal pricing for real and reactive power is a very important issue in a deregulation environment. This paper summarises the optimal pricing problem as an extended optimal power flow problem. Then, spot prices are decomposed into different components reflecting various ancillary services. The derivation of the proposed decomposition model is described in detail. Primary-Dual Interior Point method is applied to avoid ‘go’ ‘no go’ gauge. In addition, the proposed approach can be extended to cater for other types of ancillary services.
- Published
- 2004
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